Bermuda is a twenty-one-square-mile island isolated in the Atlantic Ocean, seven hundred miles away from its nearest neighbor. The close proximity of Bermuda to the United States makes the U.S. a primary trading partner.
The close proximity of Bermuda to the United States makes the U.S. a primary trading partner. With no natural resources, other than its appeal as an offshore business center and a vacation destination, Bermuda imports most everything; 71% ($683.8 million) of the island’s imports derived from the U.S. in 2014, the latest date for which statistics are available.
Bermuda’s economy is almost wholly dependent on FDI in the insurance, reinsurance, and financial services sectors – with a small contribution from the tourist sector. In 2015, the latest date for which data is available, these international businesses contributed the most to total GDP at 85 percent, compared to tourism’s roughly 5 percent.
FIVE REASONS TO INVEST IN BERMUDA
a stable, democratic government;
low personal and corporate taxes;
a pool of skilled professionals;
proximity to the United States, and extensive air and communication networks;
a stable currency, the Bermuda dollar (BMD), pegged at par to the USD.
As a British Overseas Territory, Bermuda’s legal system is grounded in UK common law. Its legal, regulatory and accounting systems adhere to high ethical and transparency standards. It generally effectively and impartially enforces its laws to combat corruption and money laundering. There is no government interference in the court system that could affect foreign investors.
Bermuda law recognizes and enforces secured interests in real property. The government of Bermuda’s policies facilitate the free flow of financial resources in the product and factor markets, and the U.S. Securities and Exchange Commission recognizes the Bermuda Stock Exchange (BSX) as a Designated Offshore Securities Market. There is a general awareness of responsible business conduct among both producers and consumers.